Air Canada posts $270M profit

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MONTREAL — ACE Aviation Holdings Inc., the parent of Air Canada, has rebounded to a third-quarter profit of $270 million from a year-earlier loss.

Income for the quarter ended Sept. 30 amounted to $2.33 a share, diluted, and contrasted with a loss of $81 million or 67 cents per share a year earlier, when Air Canada was struggling to emerge from bankruptcy-court shelter.

The results beat by far analysts' consensus forecast for earnings of $1.48 a share, according to Thomson Financial.

The year-ago numbers included reorganization and restructuring items of $313 million.

Operating revenues rose 14 per cent to $2.83 billion, the Montreal-based company reported Wednesday.

"Our ongoing efforts to reposition this company are clearly paying off," Robert Milton, chairman and CEO of ACE Aviation Holdings Inc., said in a release.

"These results for the third quarter, traditionally our best, are the strongest results reported by any North American carrier for the period and reflect our ability to now achieve North American industry leading levels of profitability versus low-cost carriers as well as legacy carriers."

But he added that high fuel prices and increasing airport and air navigation fees compel the firm to renew its focus on reducing costs.

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Considering there past financial problems inthe recent past, this is very good news